US stocks move higher a day after big loss

STEVE ROTHWELL
AP Markets WriterPublished: January 14, 2014 11:55AM

NEW YORK (AP) -- Stocks rose on Wall Street Tuesday, rebounding after their biggest drop in two months a day earlier. The gains were led by the technology sector. If the Dow Jones industrial average ends the day higher, it will be only its third gain of the year.

CABLE BUY: Time Warner Cable rose $3.51, or 2.7 percent, to $135.91 after Charter Communications intensified its pursuit of the company. Charter said Monday it would bring an offer directly to shareholders if needed after getting rebuffed by Time Warner Cable's management.

BANK EARNINGS: Investors were watching results from two big banks. JPMorgan Chase, the nation's biggest bank by assets, rose 23 cents, or 0.3 percent, to $57.90 after reporting gains in most of its divisions except for investment banking.

Wells Fargo fell 42 cents, or 0.9 percent, to $45.14. The nation's biggest mortgage lender reported a sharp drop in its mortgage business even as its bottom-line income rose 11 percent.

CONSOLIDATION, NOT CAPITULATION: Despite the slow start to the year -- the S&P 500 index is down 1.2 percent in 2014 after a gain of almost 30 percent last year -- many investors remain optimistic that stocks will end this year higher, as well and regard the current slump as a pause rather than a collapse.

"Valuations have been certainly been pushed higher, so (stocks) are no longer cheap," said Eric Wiegand, senior portfolio manager at U.S. Bank Wealth Management. "But we would contend that they are still fair."

RETAIL SALES: Americans spent more on clothing and online in December, but they cut back almost everywhere else. Retail sales rose just 0.2 percent last month, the Commerce Department said Tuesday. Sales had risen sharply in October and November, helped by brisk auto sales.

SURGING SURGERY: Intuitive Surgical jumped $36, or 9.2 percent, to $135.50 after the company said it will report revenue in the fourth quarter that is higher than Wall Street analysts are forecasting, as procedures performed with its robotic da Vinci system increased.

GAMESTOPPED: GameStop plunged $8.63, or 19 percent, to $38.40 after the world's largest video game retailer gave a profit outlook below Wall Street's expectations for its crucial holiday quarter, despite higher-than-expected sales.

TREASURYS AND COMMODITIES: Bond prices fell. The yield on the 10-year Treasury note rose to 2.85 percent from 2.83 percent on Monday. The price of oil rose 55 cents, or 0.6 percent, to $92.35. Gold climbed $2.10, or 0.2 percent, to $1,251 an ounce.